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Independent Contractor or Naw? Getting the Classification Right
Join Enzo Garza and Dan Evanoff for a deep dive into one of the most common (and costly) mistakes businesses make: worker misclassification.
In this episode, they tackle the murky waters of determining whether someone is truly an independent contractor or should be a W-2 employee. Dan reveals that he spots red flags in contractor payments "99.99% of the time," and the duo breaks down why this matters more than most business owners realize.
What you'll learn:
- The three key tests for determining worker classification
- Why "they want to be a contractor" won't protect you in an audit
- Hidden risks beyond payroll taxes (workers' comp, sales tax nexus, and more)
- Real-world red flags that scream misclassification
- Practical solutions when you discover you've been doing it wrong
- How different states approach classification (spoiler: California is strict)
From payment structures to project scopes, from handbooks to insurance requirements, Enzo and Dan cover everything you need to know to stay compliant. They even share a wild story about gift card fraud that led to firing a client!
Whether you're a small business owner, HR professional, or accounting pro, this episode provides actionable insights to help you avoid expensive penalties and protect your business. Plus, you'll finally understand why having contractors sign your employee handbook is a terrible idea.
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By Enzo Garza & Dan EvanoffJoin Enzo Garza and Dan Evanoff for a deep dive into one of the most common (and costly) mistakes businesses make: worker misclassification.
In this episode, they tackle the murky waters of determining whether someone is truly an independent contractor or should be a W-2 employee. Dan reveals that he spots red flags in contractor payments "99.99% of the time," and the duo breaks down why this matters more than most business owners realize.
What you'll learn:
- The three key tests for determining worker classification
- Why "they want to be a contractor" won't protect you in an audit
- Hidden risks beyond payroll taxes (workers' comp, sales tax nexus, and more)
- Real-world red flags that scream misclassification
- Practical solutions when you discover you've been doing it wrong
- How different states approach classification (spoiler: California is strict)
From payment structures to project scopes, from handbooks to insurance requirements, Enzo and Dan cover everything you need to know to stay compliant. They even share a wild story about gift card fraud that led to firing a client!
Whether you're a small business owner, HR professional, or accounting pro, this episode provides actionable insights to help you avoid expensive penalties and protect your business. Plus, you'll finally understand why having contractors sign your employee handbook is a terrible idea.